The Dover manufacturing Company has plants in Cleveland, Chicago, Houston, and Seattle. It ships products MX 13 from these plants to warehouses in Los Angeles, Denver, and Omaha. The freight costs per unit for shipping from Cleveland are respectively $5, $1, $0; from Chicago, $3, $2, $4; from Houston, $7, $5, $2; and from Seattle, $9, $6, $0. The plants can supply respectively 20, 10, 15, and 15 units. The needs of the warehouses are respectively 5, 10, and 15 units. a) Set up the above problem appropriate for the transportation model. b) Find the starting solution using the NW corner method (Not required to find the Final solution).

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget. the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead. a total of 119,300 units, using 478,000 direct labor hours, were produced during the year. actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.